Southeast Asia’s digital economy has experienced significant growth, reaching approximately $100 billion in revenue by the end of 2023, according to research conducted by Temasek, Google, and Bain. Despite facing global challenges, the region has seen an increase in digital consumers, leading to higher expectations for brand interactions and engagement.
However, there seems to be a disconnect between brands and consumers in today’s market. In Singapore, nearly 90 percent of business leaders found it more difficult to reach prospective consumers in 2023, and over 80 percent reported slowing growth with previously effective strategies yielding diminishing returns.
To address these challenges, marketers in Southeast Asia need to embrace new strategies and technologies to keep pace with the rapidly evolving marketing space. As we enter 2024, successful marketers will be those who incorporate the right technologies and channels into their strategies to target and reach the right customers.
One technology that is expected to continue gaining popularity in 2024 is artificial intelligence (AI). In 2023, the region’s companies increased their investment in AI and machine learning by 67 percent compared to the previous year. AI is viewed as an assistant that enhances marketers’ ability to manage day-to-day tasks and develop personalized content that resonates with audiences. Automating labor-intensive work through AI frees marketers to focus on more meaningful tasks and provides data-backed insights for connecting with customers.
However, there are still barriers to the adoption of AI, with 35 percent of Singapore marketers expressing concerns about not knowing how or where to begin with AI tools. Training and hiring AI implementation experts are expected to help overcome these challenges.
Another key trend for successful customer engagement in 2024 is the use of social media platforms. Southeast Asia has social media users spending approximately three hours per day on these platforms, exceeding the global average. Marketers need to leverage social media to reach customers and elevate social commerce to become the best performing marketing channel in terms of return on investment. Influencer partnerships and social selling tools, along with providing customer service through direct messages on social platforms, can help create seamless in-app shopping experiences.
Short-form video content will also continue its dominance in 2024. Platforms like TikTok, Instagram, and YouTube are expected to experience the most growth, with social media videos playing a significant role in online discovery and offering high return on investment for social media marketing.
More than half of Southeast Asians follow influencers on social media, and their recommendations heavily influence purchasing decisions. Collaborating with influencers, particularly micro-influencers with engaged communities, can aid in brand awareness and connecting with the target market.
With Google phasing out third-party cookies, marketers in Southeast Asia will turn to social media targeting and first-party data to reach their audience. Alternative solutions to third-party cookies, coupled with AI content development capabilities, will help marketers create personalized content that improves the customer experience and increases potential conversion rates.
To enhance collaboration and alignment, marketers will work towards integrating data with Customer Relationship Management platforms, allowing for better management of customer data and automation of marketing and sales processes.
As Southeast Asia’s digital economy continues to grow, marketers must adapt and leverage AI, social media, and personalized content to stay ahead of the trends and successfully engage with customers in the digital-first economy of 2024.
